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David S Smith
Transport Review – Infrastructure appraisal highlights logistics hotspots
European paper and packaging manufacturer David S Smith contracted Davies & Robson to review the transport infrastructure of its plastics and logistics division. This division established a reusable pallet and layer pad pool five years ago and has expanded rapidly. The firm stores and supplies one million pads used to protect glass in transit to UK manufacturers. David S Smith also collects pallets on a return-load basis and checks, repairs and stores these pallets at sites in Scotland and Essex.
Davies & Robson investigated the company's contractual structure and planning and control methods. The firm used a local transport provider and the appraisal highlighted that above benchmark rates were being paid.
To help reduce costs, it was suggested that several hauliers were contacted during rate renegotiations, for service on a long-term contractual basis. For increased efficiency, Davies & Robson also recommended the introduction of a rate per unit rather than a rate based on per load/trip. Planning could also be enhanced with advanced notification of delivery and loading and closer monitoring.
The review was completed within three months and we have been retained to assist in further review projects.
www.davidssmith.com
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